RECORDER REPORT
KARACHI: Pakistan's rupee continued to sustain losses against the US dollar for the 10th successive session, settling with a depreciation of 0.66% in the inter-bank market on Thursday, as investors await funding from friendly countries and international creditors.
As per the State Bank of Pakistan (SBP), the rupee closed at 235.88 after declining by Rs1.56. During the last 10 trading sessions, the rupee has cumulatively declined by Rs17.28 or 7.3% against the US dollar.
On Wednesday, Pakistan's rupee had sustained losses against the US dollar for the ninth successive session, settling with a depreciation of 1.02% at 234.32 in the inter-bank market as the dollar strengthened globally. At the same time, investors remained wary of a rising import bill.
The local currency has come under renewed pressure this month, which has been attributed to the strengthening US dollar index, alongside a rise in import of food-related items.
In a video message, Exchange Companies Association of Pakistan (ECAP) General Secretary, Zafar Paracha said the respite in rupee’s value, which came from International Monetary Fund (IMF) funding, was short-lived.
“Moreover, funding promised by friendly countries after the IMF programme resumption has yet to be realised,” he said, adding that floods have devastated the local economy and inflation could increase further.
Paracha informed that the gap offered in the open-market and inter-bank is reducing, after ECAP itself imposed a cap on the rates being offered.
Former finance minister Dr Hafeez Pasha, while talking to Business Recorder on Wednesday, had stated that smuggling of the dollar, increase in trade deficit, non-materialisation of funds from friendly countries as well as absence of investment have contributed to the ongoing pressure on the rupee.
“There has been no significant increase in foreign exchange reserves despite disbursement of $1.16 billion by the International Monetary Fund (IMF), which implies that the country has not yet received expected funds from friendly countries,” Dr Pasha said, adding that smuggling of the dollar and increase in trade deficit have exacerbated the problem.
Internationally, the dollar stood near recent peaks on Thursday as markets increased bets the Fed has more work to do in its aggressive tightening streak to curb red-hot inflation, while wariness of intervention kept the yen steady.
The US dollar index, which measures the greenback against a basket of currencies, was up 0.09% to 109.7, not far off its two-decade peak of 110.79.
Moreover, oil prices, a key determinant of currency parity, fell on Thursday as expectations of weaker demand and a strong US dollar ahead of a potentially large interest rate increase outweighed supply concerns.
Open-market movement
In the open market, the PKR lost one rupee for buying and 2 rupees for selling against USD, closing at 239 and 241, respectively.
Against Euro, the PKR lost 2 rupees for both buying and selling, closing at 242 and 244 respectively.
Against UAE Dirham, the PKR lost one rupee for both buying and selling, closing at 67.50 and 68, respectively.
Against Saudi Riyal, the PKR lost one rupee for buying and 1.10 rupees for selling, closing at 64 and 64.50, respectively.
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Open Bid Rs 239.00
Open Offer Rs 241.00
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Thursday
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Open Bid Rs 236.00
Open Offer Rs 237.00
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RUPEE IN LAHORE: The Pak rupee continued its downtrend for the fourth consecutive day against the greenback in the local currency market on Thursday.
Following constant buying spree in the market, the short supply phenomenon of the greenback prevailed for another day which helped its further appreciation for buying and selling at Rs 240.00 and Rs 241.00 against the overnight close of Rs 238.60 and Rs 239.00, respectively, local currency dealers said.
On the contrary, the rupee failed to sustain its day earlier recoveries and depreciated its worth against the pound sterling. As a result, the pound’s buying and selling rates rose from Wednesday’s close of Rs 277.00 and Rs 279.70 to Rs 278.00 and Rs 280.00, respectively, they added.
Copyright Business Recorder, 2022
